The Company released data from its transrectal safety study
demonstrating that PRX302 was well tolerated through three months
following a transrectal injection. The results support the use of a
transrectal ultrasound (TRUS) guided injection for the delivery of
PRX302 directly into the prostate. This route of administration will be
used in future clinical trials of PRX302 in patients with BPH.

The Company announced the appointment of Randall E. Woods as Chief
Executive Officer effective August 16, 2012. Mr. Woods brings almost 40
years of relevant industry experience to Sophiris, including past roles
as CEO at NovaCardia Inc. (acquired by Merck & Co in 2007) and Corvas
International (acquired by Dendreon in 2003).

Financial Results for the Quarter Ended September 30, 2012

The Company reported a net loss of $5.6 million ($0.03 per share) for
the three months ended September 30, 2012, compared to a net loss of
$3.0 million ($0.02 per share) for the three months ended September 30,
2011, representing an increase of $2.6 million. The increase in net
loss was driven primarily from an increase in total operating expenses
over the same period in 2011 as a result of our increased research and
development activities of PRX302, principally our on-going transrectal
study and clinical material manufacturing expenses.

Research and Development Costs

Research and development costs were $3.4 million for the three months
ended September 30, 2012, versus $1.5 million for the three months
ended September 30, 2011, an increase of $1.9 million. The increase in
research and development expenses is primarily attributable to the
PRX302 clinical program, specifically the ongoing transrectal study and
clinical material manufacturing expenses.

General and Administrative Costs

General and administrative costs for the three months ended September
30, 2012, were $2.0 million, an increase of $0.9 million from the $1.1
million incurred during the three months ended September 30, 2011. The
increase in general and administrative expenses is primarily related to
an increase in market research costs and to a lesser extent an increase
in personnel related costs associated with the build-out of our San
Diego headquarters.

Interest Income

Interest income increased approximately $25,000 in the three months
ended September 30, 2012, compared to the three months ended September
30, 2011. The increase in interest income was due to an increase in the
average cash balance invested in interest bearing accounts during the
three months ended September 30, 2012 compared to the prior period.

Interest Expense

Interest expense for the three months ended September 30, 2012, was $0.5
million, an increase of $0.1 million from the $0.4 million incurred
during the three months ended September 30, 2011. The interest expense
recorded by the Company is related to the Company's secured promissory
note with Oxford Financial LLC. The secured promissory note was
originated during July 2011 and therefore the increase in the interest
expense from the three months ended September 30, 2011 to September 30,
2012 is the result of the promissory note being outstanding for the
entire three months during 2012.

Financial Results for the Nine Months Ended September 30, 2012

The Company reported a net loss of $15.8 million ($0.10 per share) for
the nine months ended September 30, 2012, compared to a net loss of
$8.5 million ($0.07 per share) for the nine months ended September 30,
2011, representing an increase of $7.3 million. The increase in net
loss was driven primarily from an increase in total operating expenses
of $6.4 million over the same period in 2011, as a result of our
increased research and development activities of PRX302, principally
our on-going transrectal study and clinical material manufacturing
expenses.

Research and Development Costs

Research and development costs were $10.2 million for the nine months
ended September 30, 2012, versus $4.5 million for the nine months ended
September 30, 2011, an increase of $5.7 million. The increase in
research and development expenses is primarily attributable to the
PRX302 clinical program, specifically the on-going transrectal study
and clinical material manufacturing expenses.

General and Administrative Costs

General and administrative costs for the nine months ended September 30,
2012, were $4.3 million, an increase of $0.7 million from the $3.6
million incurred during the nine months ended September 30, 2011. For
the nine months ended September 30, 2011, included as a component of
our general and administrative expenses is $0.7 million of severance
related costs associated with the shut-down of our Vancouver
operations. When the severance related costs are excluded from our
operating results for the nine months ended September 30, 2011, our
general and administrative expenses increased $1.4 million for the nine
months ended September 30, 2012 compared to the same period in 2011.
This increase primarily relates to an increase in personnel related
costs associated with the build-out of our San Diego headquarters,
market research costs and costs associated with our recent name change.

Interest Income

Interest income increased approximately $43,000 in the nine months ended
September 30, 2012 compared to the nine months ended September 30,
2011. The increase in interest income was due to an increase in the
average cash balance invested in interest bearing accounts during the
nine months ended September 30, 2012 compared to the prior period.

Interest Expense

Interest expense for the nine months ended September 30, 2012, was $1.5
million, an increase of $1.1 million from the $0.4 million incurred
during the nine months ended September 30, 2011. The interest expense
recorded by the Company relates to the Company's secured promissory
note with Oxford Financial LLC. The secured promissory note was
originated during July 2011 and therefore the increase in the interest
expense from the nine months ended September 30, 2011 to September 30,
2012 is the result of the promissory note being outstanding for the
entire nine months during 2012.

For complete financial results, please see our filings at www.sedar.com.

About Sophiris

Sophiris Bio Inc. is a urology company developing a late-stage, highly
targeted treatment for benign prostatic hyperplasia (BPH or enlarged
prostate), an unsatisfied market with significant demand. PRX302, the
company's lead candidate for BPH, is designed to be as efficacious as
pharmaceuticals, less invasive than the surgical interventions, and
without the sexual side effects seen with existing treatments. Sophiris
is planning to begin a pivotal trial in the first half of 2013.
Sophiris is advised by world-leading urologists, backed by experienced
investors, and led by a team that has achieved more than twenty drug
approvals. For more information, please visit www.sophirisbio.com.

Certain statements included in this press release may be considered
forward-looking. Such statements involve known and unknown risks,
uncertainties and other factors that may cause actual results,
performance or achievements to be materially different from those
implied by such statements, and therefore these statements should not
be read as guarantees of future performance or results. All
forward-looking statements are based on Sophiris' current beliefs as
well as assumptions made by and information currently available to
Sophiris and relate to, among other things, anticipated financial
performance, business prospects, strategies, regulatory developments,
market acceptance and future commitments. Readers are cautioned not to
place undue reliance on these forward-looking statements, which speak
only as of the date of this press release. Due to risks and
uncertainties, including the risks and uncertainties identified by
Sophiris in its public securities filings; actual events may differ
materially from current expectations. Sophiris disclaims any intention
or obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.